Selling agricultural land to release capital
The demand for land from land investors, house builders and horse owners wanting a paddock means that farmers considering selling land to release capital have little trouble finding buyers.Large-scale development will offer significant opportunities for many farmers and landowners in the East Midlands and the South East where Government plans to build about 750,000 new homes
"One example is a 161ha (400 acre) site east of Wellingborough, to be developed for about 3500 houses and employment use, that is owned by a consortium of eight landowners.
Development Hot Spots already identified by the government are:
For example, Milton Keynes is set to grow by another 45,000 homes. Landowners looking at strategic urban expansion should look at the map and ask themselves: Which direction will planners go?"
With the M1 running up the eastern side of the city, planners may choose to fill the gap between the existing city boundary and the motorway in addition to some development along the city's western fringe towards the north Buckinghamshire border.
A 200ha (480-acre) site to the west of Bedford town is scheduled for 2700 new homes. A consortium of three landowners - two farmers and the county council own the land.
Tapping into local development potential isn't always a quick way of realising capital tied up in land. "The landowners in the Bedford project have promoted this site to planners for over 15 years. A quicker process can be to sell the land to land investors and let them have the wait for planning permission to be granted.
"Local authorities are presently introducing Local Development Frameworks in a bid to simplify the planning system. These will shape policy up to 10 years ahead, and completely replace old local planning guidelines.
Many Investors are now investing in land, looking to acquire strategic parcels of land that may gain residential planning permission in the future. Institutions like pension funds, wealthy family trusts and Oxbridge colleges are will pay a premium "hope value" over agricultural values.
As well as investing in land with the hope of gaining planning permission people are buying agricultural land to exploit its amenity and leisure potential.
This is best shown in the booming pony paddock market where it is not uncommon for horse paddocks, close to villages or other settlements, to achieve £20,000/acre.
And for the right parcel of land, with access to water and electricity this value can increase into the £30,000 per acre range.
